December 1, 2021, at 8:45 a.m.
Aspo Capital Markets Day 2021: Aspo publishes its focused strategy and new financial targets – aims for growth and higher profitability
Aspo holds a Capital Markets Day today, December 1, 2021, starting at 1 p.m. in Helsinki. The group's new strategy, updated long-term financial targets and, in more detail, the current state of Aspo's business operations and prospects will be presented. Aspo will also publish its new sustainability targets for the group and its businesses.
Our new long-term financial targets are:
- Operating profit of 8 per cent (previously 6%)
- Net sales growth 5–10% per year (new target)
- Return on equity over 20%
- Long-term gearing below 130%
"Aspo creates value by owning and developing businesses in the long term. The improved operating profit margin target is supported by Aspo's business development measures and changes in the business portfolio. In addition to organic growth, the aimed growth is driven by investments in acquisitions and a strategic shift towards a compounder profile. Mergers and acquisitions are a key part of value creation, and the aim is to create growth and income flow through these," says Rolf Jansson, CEO of Aspo.
Sustainability forms an integral part of our acquisition process and ownership agenda. Aspo's businesses aim to be forerunners in sustainability. In order to support our ESG commitments Aspo has defined new ESG targets for the material areas of the group and its business operations. The main target is to reduce emission intensity CO2e (tn) / turnover (t€), by 30% by the year 2025. The current level (2020) is 0.44 and the target level (2025) is 0.30.
Aspo 's dividend policy remains unchanged. Aspo aims for annually increasing dividend payments leaving room for strategic investments. The dividend will be paid in two installments as before.
Focusing of Aspo business portfolio
In line with its strategy, ESL Shipping focuses on handysize and coaster ship class operations with the aim of strengthening their leading role as an industrial partner. The goal is to be a pioneer in technological solutions, sustainability, quality of service and new operating design. The shipping company's new operating profit target is 14% (previously 12%). Telko’s organic growth is accelerated by M&A activities and its new target level for operating profit is 8% (previously 6%). Telko will continue to focus on the value-added product segment. Leipurin aims for better profitability through a separate development program launched to improve and harmonize the company's management system by developing both commercial and supply chain management capabilities. The target for operating profit remains unchanged at 5%. In line with its updated strategy, Leipurin aims to expand the bakery business and strengthen its market position in the food industry. Growth supports the operating profit target.
Strategic options are being assessed for the Kauko business and Vulganus Oy, which is part of Leipurin, and these operations have been defined as non-core businesses for Aspo.
Guidance for 2021 unchanged
Aspo’s operating profit will be approximately EUR 30–36 (19.3) million in 2021. The guidance includes the impact of the impairment of Kauko’s goodwill of EUR 3.4 million.
Following Capital Markets Day and presentation materials
The webcast can be followed live on Aspo's website (www.aspo.com) from 1 p.m. today. Webcast recording and presentation materials (in English) will be available on the website after the event.
Rolf Jansson, CEO, tel. +358 400 600 264, [email protected]
Keijo Keränen, Group Treasurer, +358 400 955 821, [email protected]
Aspo creates value by owning and developing business operations in the long term. Our companies aim to be market leaders in their sectors. They are responsible for their own operations, customer relationships and the development of these aiming to be forerunners in sustainability. Aspo supports its businesses profitability and growth with the right capabilities. Aspo Group has businesses in 18 different countries, and it employs a total of approximately 960 professionals.